Systems and methods for administering return sweep accounts

Abstract

A method, system, and program product for managing funds for a plurality of client accounts at a first banking institution, the system comprising: one or more electronic databases, comprising: (i) client account information; (ii) aggregated transaction account information for a plurality of FDIC-insured and interest-bearing aggregated deposit accounts held in a plurality of banks in a program including the first banking institution; and (iii) subaccount information; and one or more computers configured for (a) accessing the electronic database and administering clients' deposits and withdrawals from the client accounts, comprising processing transaction data for more than six (6) withdrawals and / or transfers from each of at least two of the client accounts; (b) determining, whether the balance of funds for the respective client in the aggregated deposit account at the first bank equals or exceeds a specified amount, and if not, then designating the first bank to receive the deposit, and if it does, determining another bank in the program and designating the deposit for the other bank.

Description

[0001]This application is a Continuation of application Ser. No. 10 / 071,053, filed on Feb. 2, 2002, which is a Continuation-in-Part of application Ser. No. 09 / 677,535, filed on Oct. 2, 2000, and is a Continuation-in-Part of application Ser. No. 09 / 176,340, filed on Oct. 21, 1998. The entirety of the disclosure of each of these applications is incorporated herein by reference for all purposes.FIELD OF THE INVENTION[0002]The invention relates generally to computerized banking techniques and, more specifically, to techniques by which deposits are kept on a bank's balance sheet while being administered as sweep account funds by a third party.BACKGROUND OF THE INVENTION[0003]It would be desirable if investors could obtain fully-insured, interest-bearing bank accounts that offer an unlimited number of fund transfers per month. However, present statutory restrictions prevent banks and savings institutions from paying interest on certain types of deposit accounts. More specifically, Title 1...

AI Technical Summary

Benefits of technology

[0010]It is another object of the invention to provide bank and / or savings institution clients with interest from funds on deposit while simultaneously providing the ability to implement up to an unlimited number of transfers.

[0011]It is a further object of the invention to permit the bank and / or savings institution to retain client-deposited funds on its books so that these funds can be used as a source for loans.

[0012]It is yet a further object of the invention to provide a banking method that enables clients to deposit funds into an account from any of various sources, and to make payments from the account via any of various instruments, without limitation as to the number of transfers, while still earning interest on the funds in the account.

[0015]It is a further object of the invention to provide a money market banking method which is readily integrable into the existing infrastructure of a bank or savings institution.

Problems solved by technology

However, present statutory restrictions prevent banks and savings institutions from paying interest on certain types of deposit accounts.

Therefore, owners of demand accounts do not obtain interest on their funds.

This may be difficult in the case of smaller, community-based banks, as these institutions depend upon such funds as a source for loans.

Moreover, some bank clients are not comfortable with arrangements that transfer client funds to unfamiliar third parties.

These approaches, which include money fund sweeps and repo sweeps, are disadvantageous in that they involve a removal of commercial customer deposits from the bank's balance sheets.

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